Backdoor Bitcoin Plays

Have you seen Bitcoin’s run this year? Its value has soared, grabbing attention. But there are ways to invest in bitcoin that beat the spot price of BTC or even Bitcoin ETFs.

You can invest in its success in ways that I call “backdoor Bitcoin” plays using the stock market. Companies like MicroStrategy and Coinbase offer unique investment opportunities, handily beating Bitcoin itself in 2023.

Let’s explore these options.

Bitcoin’s Impressive Run

Bitcoin had an amazing year. It rocketed from $17,100 to over $40,000. But a rising tide lifts other boats… that’s where MicroStrategy and Coinbase come in, each with unique powers in the investment world.

MicroStrategy: A Bitcoin Adventure

MicroStrategy’s journey this year was remarkable. It soared from $203 to $599, almost tripling in value. This company is a big fan of Bitcoin, which made history in 2020 when former CEO Michael Saylor adopted it as its primary treasury reserve asset.

So, when Bitcoin does well, so does MicroStrategy. But there’s more to it. The company’s overall business performance also plays a crucial role.

Coinbase: The Gateway to Bitcoin

Coinbase made an even more impressive leap. Its value climbed from $40.24 to $146. This platform is the emerging hub for digital currency in the U.S., simplifying Bitcoin transactions. The more people use Coinbase, the better the company performs.

Investing in Coinbase means you’re betting on the entire digital currency world, not just Bitcoin. It’s like diversifying your investments across many options and being paid a multiple.

And speaking of options, each of the above companies have options that trade on each stock allowing you to further leverage their gains and supercharge your trading profits.

Comparing the Giants

Now, let’s compare. Bitcoin grew by about 134% – that’s quite a feat.

But MicroStrategy outperformed it, with 195% growth. And Coinbase? It crushed them all, skyrocketing by about 263%.

These numbers reveal that investing in companies like MicroStrategy and Coinbase can sometimes surpass direct Bitcoin investments. Their ability to be strategic and raise capital contributes to this impressive growth. When you throw in the ability to trade options, these backdoor ways to play Bitcoin should be in every Bitcoin trader’s playbook.

MicroStrategy and Coinbase offer amazing alternative, and often more lucrative, paths to share in Bitcoin’s success.

Leveraging Data for You,

Brad Hoppmann
Analyst, Market Minute